Monday, April 27, 2009

Les Bois Park in Black and White

Sorry to keep beating the same drum over and over, but based on some of the comments that are being posted on here, there is apparently still some confusion about Les Bois Park, so here goes again.

My colleagues and I were not trying to shut down horse racing at Les Bois Park. If that were the case, we would have avoided the cumbersome Request for Proposals process altogether and just agreed to change uses. In fact, we streamlined the RFP process and advertised nationally, with the hope that a credible operator would submit a reasonable proposal to run the track.

It HAS been possible to find an operator that passed the County’s background check. Capitol Racing did. They also had horse racing experience and did a very credible job running the place. Unfortunately, according to the Idaho Racing Commission’s annual reports, in 2006, Capitol lost about $1.1 million, in 2007 they lost about $1.2 million and in 2008, they lost nearly $1.3 million. Perhaps the problem finding an operator now has to do with the fact that no one wants to risk a $1.4 million loss in 2009.

Some people have asked: How does not running the track benefit the community more than running it with an operator that hasn’t met our standards? History speaks for itself on this issue. It is apparent to me that everyone would have been better off in the long run had Lariat Productions not been given the opportunity to run the operation.

There can still be income realized, whether the track is leased out for horse racing or not. Perhaps rather than horse racing, we should pursue the possibility of hosting dressage competitions at Les Bois Park.

LesBois Trainer wrote: “Since when does an annual audit of the Green Group bingo become an "investigation" by the Idaho Lottery?” The documents I have seen, November Allegations and Consent Order, indicate that there has been an ongoing investigation of a number of alleged violations, above and beyond a typical annual financial audit. It is fair, in my opinion, to say that Greene Idaho is under investigation.

Please be sure to note that the November 12, 2008 Revocation Order announces the Lottery’s intention “to revoke Greene Idaho’s charitable gaming license.” In the January 16, 2009 Consent Order, Greene Idaho admits to violating Idaho Law on at least two occasions, and “agrees to pay a $1000 fine to the Idaho State Lottery.” Considering the gravity of all of the initial charges against Greene Idaho, which were levied as recently as last November, it behooves us to ensure that the forthcoming results of the audit are squeaky clean.

LesBois Trainer also wrote: “You should follow your campaign promise of full disclosure and let everyone know the real reason you rejected both proposals, YOU DON'T WANT HORSE RACING AT THE WESTERN IDAHO FAIRGROUNDS ANYMORE.” You don’t have to agree with what we have done thus far, but that doesn’t mean I have broken any campaign promises or been less than completely open and forthright about the nature of the difficulties we have been having in getting a credible operator to run horse racing at Les Bois Park.

Eric asked me to compare the situation with Les Bois Park and the Hawk’s Stadium. In or around 1989, then Ada County Commissioners Vern Bisterfeldt, Judy Peavey-Derr and Mike Johnson entered into three long-term lease agreements for pieces of the Western Idaho Fairgrounds. Les Bois Park was leased out for $100 per year, an amount that was annually adjusted by the Consumer Price Index. Some maintenance and improvement of the facility was included in the deal. The RV Park, on the river side of the fairgrounds, was leased out in a similar arrangement, starting at $50 per year.

Hawks Stadium was a little different. The baseball franchise leased the ground under the stadium for $1 a year for 50 years, paid up front, and then built the stadium there. At the end of the 50-year lease, ownership of the stadium will transfer to the County. We still have over 30 years to wait. It won’t take nearly that long to figure out an appropriate course of action for Les Bois Park.

2 Comments:

At April 28, 2009 at 10:28 AM , Blogger Scott M. Phelps said...

Dear Ms. Ullman-



My children tell me most blog posters prefer to remain anonymous. That frankly is not the way I think so I decided to do this in a more open format so you and the Idaho community can see my responses. My name is Scott Phelps and I am Vice President of the Greene Group Inc. a family owned Tuscaloosa Alabama based business. Originally we created Greene Idaho as a non profit foundation for the needs of the North Idaho communities. Greene Idaho is now run by an independent board of directors. The Foundation, as you know because you have seen the support letters, enjoys great support in the community and has contributed more than $250,000 to local charities over the years.



The Foundation raises money for the local charities by providing bingo. Our for profit business, Coeur D’Alene Racing LTD. makes the facility in Post Falls available to the bingo operation rent free. The for profit business takes care of the maintenance and insurance for the facility without charge to the Foundation. Virtually all of the administrative expense money allocated by the Idaho statutes dealing with Bingo goes to pay the employees of the Bingo operation, all of whom are local residents.



I think it wise you linked on your latest blog entry the November revocation order which you term “allegations”. A number of the businesses associated with the Greene Group are in regulated industries. We are accustomed to dealing with and cooperating with regulators doing their job. Such was the case in November with the Idaho lottery Commission. The audit conducted in September gave rise to a number of concerns which led to the proposed revocation order. We did what I believe responsible people do in dealing with a regulator. Where the facts were different than appeared to the auditor we demonstrated that. Where we made errors, we took responsibility for those errors and undertook to correct them. As reflected in the consent order you attached on your latest blog entry, the issues were explained to the satisfaction of the regulator and only the issue concerning the payees of winners checks resulted in the agreed fine of $1,000 (about 4 speeding tickets in Alabama). Your link on your latest blog entry to the order provides the readers with the additional information needed in that it was shown that the Foundation “provided the Commission with records made contemporaneously with the checks detailing the recipients of the cash….” Because we did not know of the auditors concern with respect to the payees (which concern by the way I think was justified) we did not provide the additional information until after the audit.



The Bingo operation run by the Foundation is not and never has been a money making endeavor. It is important to our Idaho community where we have been in business for 20 years. I do not expect horse racing at the park to be a money maker. But we were approached by certain people in the horse racing community and asked to consider it. We run and have run racetracks in other states. We believe the horse industry in Idaho to be an important part of the fabric of the state, and we said we would do what we could to make racing viable in Idaho. I will confess that I have been offended by the tone of your blogs and comments to both the local newspapers and television media as they relate to our business, but I chalk that up to some mis-information on your part. We have provided numerous references to the County Commission including a County Fair Association in Texas where we currently manage a horse track for them, and I have been told those references (and others whose names were not provided by us) were reported to the County Commission as “excellent”. In the interest of fairness and balance I wish you had seen fit to mention that also in one of your statements. I do not blame you for wanting all available information from the Idaho Lottery Commission, and the latest audit of the Foundation should be complete soon. But there will be audits after that in both the foundation and many of our other businesses. Some will reflect matters to be addressed. Others will not. We have always enjoyed good relationships with our regulators who will continue to audit us because that is their duty.



I look forward to meeting you.



Scott M. Phelps
Greene Group Inc.
P.O. Box 020152
Tuscaloosa Al 35406
(205) 464-4646

 
At May 11, 2009 at 3:53 PM , Anonymous Anonymous said...

As a Les Bois "graduate" who worked at the track thru my Meridian High and U of I days while making some life-long friendships, I am very saddened to see the track go down in such an unfortunate way.

Two locals I grew up with at the track while saddeling their horses and handeling them in the starting gate, also earned their stripes at this little track before we all made our way on to Seattle, Phoenix and California.

The downhill slide of Les Bois (which never had it easy in terms of credible purse money or legislative support) really began with the last 2 kease-holders. The first, never making sense to me with the most recent well intended but still destined for failure based on past performance and unreasonable expectations. In defense of the Ada Co. Commission, as tough as it is to swallow, it would have been, from what I see and know, a mistake to have granted operational control to either of the last 2 applicants who, again and IMHO, would neither have been a long-term or viable solution.

There is very little time left to now save Les Bois (assuming this live meet will not happen in any reduced shape or from this summer-though I would encourage the County and local industry stakeholders to try to run an abbreviated fair meet during the Fair) it will be critical to have simulcasting back in place ASAP and some type of live meet in place for next summer -otherwise I'm certain horse racing will not only disappear in Boise, but state-wide as well.

The County can't and won't (though I too believe there is more they can do) shoulder this ominous responsibility alone. Where are the horse owners, trainers, breeders, local merchants, city and state gov't officials and, most importantly, the Legislature at this critical time? Is the state of the economy in the Treasure Valley and Gem State so solid that they can just watch an entire industry, the jobs it directly and indirectly creates and the agri-business infrastructure it helps support just blow away in the wind?

I suggest it will take all of the players and stakeholders just mentioned to drop their boxing gloves, take off their blinders, leave the "blame game" behind and drop the silly alternatives for the facility being floated as it won't happen without big investment, etc and the end result will be no better than the entertainment offered by the track in an area that will miss any entertainment alternatives lost.

Horse Racing people (including horse owners and regulators) must now stand up and be counted. Legislators from impacted horse popular districts and rural areas must have the courage to transparently raise a "thumbs up or down". The County, though far from responsible for the mess or the "bad guy" in need of bashing, must also be willing to do more than watch the whole industry and the jobs implode in slow motion.

One thing for certain, even if everyone dedicates themselves to working on solving the problem, the work won't take too long. If a rough solution is not at least close by the end of the year, there will be no need for anymore work as the Sports future will be over. Where will the next "Gary's", "Scott's" (and even "Lonny's")come from or get their start? Has the time really come to say good-bye to an "Old Friend"?

Lonny Powell
Lexington, KY
CEO, L. Powell Strategy & Solutions
Former Les Bois Assistant Starter, Jockey Valet & Maintenance worker (& former track president of Santa Anita, Turf Paradise, Longacres, etc.)

 

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